factual

What laws are Healthsource Chiropractic franchisees responsible for investigating?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • e. Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of chiropractic medicine and physical therapy, including without limitation: licensure, marketing and advertising, use of medical equipment and devices, the sale or recommendation of dietary supplements, fee splitting prohibitions or restrictions, anti-kickback prohibitions and other laws or regulations governing the relationships between health care service providers and suppliers with physicians and clinicians, restrictions on self-referrals, medical benefit payment systems, including self-pay, private, and government insurance requirements and regulations, advertisement of chiropractic and related medical services, and patient privacy (the "Professional Laws"). You represent and warrant that you have independently investigated the Professional Laws applicable to the practice of chiropractic medicine, physical therapy and the operation of your Franchise in the Protected Territory, and that you have confirmed under th

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees have sole responsibility for operating their franchise in compliance with all applicable laws, rules, and regulations relating to the practice of chiropractic medicine and physical therapy. These laws, referred to as "Professional Laws," include, but are not limited to, licensure, marketing and advertising, use of medical equipment and devices, the sale or recommendation of dietary supplements, fee splitting prohibitions or restrictions, anti-kickback prohibitions, and other laws or regulations governing the relationships between health care service providers and suppliers with physicians and clinicians.

These Professional Laws also encompass restrictions on self-referrals, medical benefit payment systems (including self-pay, private, and government insurance requirements and regulations), advertisement of chiropractic and related medical services, and patient privacy. Healthsource Chiropractic emphasizes that franchisees must operate their franchise in compliance with these Professional Laws throughout the term of their agreement.

Healthsource Chiropractic requires franchisees to represent and warrant that they have independently investigated the Professional Laws applicable to the practice of chiropractic medicine, physical therapy, and the operation of their franchise in the Protected Territory. Furthermore, franchisees must confirm their understanding and compliance with these laws before commencing operations. If any changes occur in the Professional Laws that would cause the franchisee's operation to violate these laws, the franchisee is obligated to immediately inform Healthsource Chiropractic of the change and propose a method to comply, which may include entering into a Management Agreement if necessary. This places a significant burden on the franchisee to stay informed and adapt to changes in the legal and regulatory landscape of their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.